 President's
Corner
Happy February! I hope your year
has started out with a bang! J
The note business is ringing true with my predictions from last month with a
couple of new investors and note buyers stepping forward and the responses to my
marketing increasing as well. With our marketing working efficiently and the
responses pouring in I wanted to briefly touch on the art of negotiation.
In
all aspects of life, we’re negotiating. We negotiate when we’re in business –
whether it’s with note holders, investors, funding sources or associates. We
negotiate with our family members – over big things and small. We negotiate
when we buy or sell. Most
of us think of negotiations as “zero sum” games – what one side gives up, the
other side gets, and vice versa. Maybe that’s true if you are never going to do
business with, live with or be friends with the person on the other side again.
This is the transaction view of negotiations.
For
most of us, however, negotiations are just one aspect of ongoing alliances.
You’re still going to be talking to the note holders and investors, you still
want to use your mechanic, and you still want to have a pleasant dinner with
your family. In these negotiations, we recognize that, sure, we want to get
what we want or need. But the person on the other side had better feel like
they are being treated fairly, too. That’s the relationship view of
negotiations.
Negotiations are far more likely to succeed when both sides have the same
attitude. For
instance, if both parties in a negotiation are transaction-oriented, the
negotiations may get heated, but everyone’s likely to understand that’s just
part of the process and not take it personally.
And
if both of you are relationship-oriented, you’re almost certain to be able to
reach an amicable and fair agreement. You may have to give up something more
today, but the other party will be willing to give up something more tomorrow.
You’re both able to take the long view, recognizing that the relationship itself
has value.
The
worst negotiations are when two parties have differing viewpoints. If one of
you is concentrating solely on the transaction (“what’s in it for me?”), while
the other is also concerned about the relationship (“what’s best for the both of
us in the long run?”), it’s a recipe for anger, frustration and probably a long
and unpleasant negotiation.
The
best business people recognize the value of approaching their negotiations from
a relationship point of view. After all, it’s very costly to have to find new
customers. The best personal relationships are built on that approach, too.
In
the note business you’re negotiating starts on that first phone call, building
the relationship and rapport, finding the need and getting the story behind the
note. When you take the “relationship” approach you set yourself up for future
referrals from that one note holder and even future proceeds from that same note
holder (think partials).
Remember, Success Demands
Action!
Keep on marketing, it’s going to
work! TWITA!
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